[jeff]

SO I know every test is different but does anyone have any insight on what has been heavily tested recently? I take the exam Monday and I need to narrow my focus….Thanks!

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[rzrbkfaith]

@_Nick_

When are you planning on taking FAR? I am going to take it mid-Nov.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

How do you answer this question?

On July 31, 2005, Dome Co. issued $1,000,000 of 10%, 15-year bonds at par and used a portion of the proceeds to call its 600 outstanding 11%, $1,000 face value bonds, due on July 31, 2014, at 102. On that date, unamortized bond premium relating to the 11% bonds was $65,000. In its 2005 income statement, what amount should Dome report as gain or loss, before income taxes, from retirement of bonds?

Select an answer:

A.

$53,000 gain

B.

$0

C.

$(65,000) loss

D.

$(77,000) loss

[Anonymous]

So I just got a 82% on a session and my trending score dropped from a 73% to 72% LOL.

[zkaraca2012]

@CPA, it's A.

Here is the answer through je:

DR: Bond payable $600,000

DR: Unamortized premium $65000

CR: (Bought back at 102) Cash $600,000 x 1.02

CR: Gain (plug) $53000

AUD 78 Lost Credit, retake after FAR rematch
BEC 83 (Expires 2015-02-28)
FAR 71 Failed (2014-09-09), retake in Q4'14
REG 80 (Expires 2015-11-30)

[Anonymous]

@Rzr, rescheduling tomorrow for the 31st of October.

With this new date, I'll be able to finish material and begin most of my review before my start date of October 6th. With a week and a half of training starting immediately, I'll rely on Becker flashcards to keep material fresh in my head, and upon my return home on the 18th, I'll continue with an extensive review (homeworks and SIMs) until the 31st after work and on the weekends.

[Anonymous]

zkaraca, thanks I ended up figuring it out after a few minutes. I forgot when a bond is called premiums are debited. Making JEs makes things so much easier though.

[Anonymous]

A company has the following liabilities at year-end:

Mortgage note payable; $16,000 due within 12 months $355,000

Short-term debt that the company is refinancing

with long-term debt 175,000

Deferred tax liability arising from depreciation 25,000

What amount should the company include in the current liability section of the balance sheet?

---

So for the DTL arising from depreciation, it would be considered non-current because the depreciation is related to an asset that is (probably) non-current?

[Anonymous]

Yeah, just remember depreciation will be long term and the short term debt being financed will end up being a LT debt. These questions are the ones on the exam that are easy to miss.

[Anonymous]

Why would the collection of proceeds from Note Payables not be investing?

[Anonymous]

Green Co. had the following equity transactions at December 31:

Cash proceeds from sale of investment in Blue Co.

(carrying value $60,000) $75,000

Dividends received on Grey Co. stock 10,500

Common stock purchased from Brown Co. 38,000

What amount should Green recognize as net cash from investing activities in its statement of cash flows at December 31?

A.

$37,000

B.

$47,500

Incorrect C.

$75,000

D.

$85,500

So why is Common Stock purchased NOT a financing activity?

[Anonymous]

@CPAHOPEFUL11: Purchase of common stock is an investing activity. You are buying an investment of shares of Brown Co. for cash. So it is an Investing activity. Hope that helps.

[Anonymous]

Nevermind figured out my own mistake while typing my post 🙂

[Anonymous]

A?

[rzrbkfaith]

@_Nick_ – I agree, A

@CPAHOPEFUL – notes payable are used to finance things – like capital expenditures, therefore the proceeds from a note payable would be a financing cash flow.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

Thanks rz, it makes sense now.

Just got my date for the 1st of October. I was kind of hoping to get it on the 2nd or 3rd, but there were no seats available. So I have 13 more days, hopefully I will finally be done with this exam.

[Author]

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